British Gas has been criticised for imposing late payment fees on small business customers who are struggling.
Financial Mail has received complaints from small business owners who say they are being charged up to £50 a time unless they settle their bills within ten days.
Chris Gorman of the Forum of Private Business said: ‘Like any business, British Gas can’t simply allow its customers to ignore their bills. However, if small firms are having trouble settling their invoices, they are clearly struggling and imposing a fine on them is counter-productive, as a firm which has gone to the wall tends to use very little gas and electricity.’
A spokesman for British Gas Business said the charge is a flat fee of £40, but added the supplier tries all other avenues to encourage payment.
He said: ‘We call the customer on the day payment is due if it has not arrived. After five days we send a letter, then we ring every day until we get through to the customer.
‘After 12 days we send another letter warning there could be a late payment charge if the debt is not paid. We work with customers to help if they have problems and we urge firms to contact us if they are struggling.’
British Gas business has about 500,000 small business customers. The spokesman said the number of those affected by the late payment charge had fallen compared with last year.
ScottishPower does not charge late payments fees, neither does npower or Eon.
Tags: British Gas, Enterprise Zone, Forum of Private Business, small business, SMEs
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March 14th, 2011 at 6:30 pmnik says:
My Company was charged £50 late apyment fee on a bill of £101. I protested and it was removed. Is this charge legal ? Can we get MPs to take action ?